I’ve been offered a full time position from the contract position at t-mobile recently but to my surprise, I need to take a pay cut in my total compensation (30% decrease in base salary, 10% pay cut if I factor in stock options, PTO, and bonus) I was thinking to stay as a contractor but my contract ends in end of April and it’s no guarantee my team will go with the same contractor company so it’s a bit unpredictable there. Is it normal for contractors to take a pay cut when they get converted? T-mobile FTE: what benefits do you enjoy most about working at T-mobile? #telecom #tmobile #contractor
DMd you
Not my personal experience, but I have a contractor friend who's almost in the same spot every contract he takes. He always refused switching to full time and the companies he worked for ended up extending his contract. He still left every time because something better appeared. Summary: stay contractor, find another contract if they don't extend.
Are T-Mobile's benefits better than your current employer (contracting company)? That could make up the difference. I don't think this is an uncommon situation, but up to you if you take it obviously.
It’s slightly better but not by a lot.
OK then just weigh the benefits and other things like job stability (at least compared to contracting) against that 10%. It costs companies more to hire FTE versus contractor because of the benefits, liability, taxes, unemployment insurance, annual salary increases, etc so that's probably why you see that difference. The additional cost can be passed onto you so to speak.
Health insurance? Is your agency paying that, or are you?
Yes, my agency is paying that.
It's pretty ridiculous that companies try to pull stunts like that. They're likely paying your agency a lot more than the benefits package they offered you cost. Being a full time employee isn't much less risky than being a contractor, you still could get laid off if they run out of work or decide to reorganize your department
That’s what I thought /:
You might get a better severance package with T-Mobile !
Don’t do it, stay as a contractor or better get offers from other companies and leave. Full-time is crap.
Care to elaborate on why its crap? My consultancy does not even sponsor my health insurance.
Well if you create a s-Corp which takes ten minutes now your employer pays your company not you. Then pay yourself an adequate salary, of which you put 19.5k on a 401k(fidelity or any broker has them) for your business. Then you match the your salary by 25% in the 401k. Almost 30k a year into the retirement. Then if you have any conferences that coincide with vacation there some deductions there. Get a good account and you will pay very little taxes legally. Oh, your health care is tax deductible from your company. Look books on taxes and s-Corp. The beauty is that now a companies will pay you for every hour, when you are full-time you pass 40 hours and not paid. Downside is the vacation what I do is that since I work from home I workout my schedule so it does not intervine with vacation time.
Contractors are treated like Shit in TMO
I still haven’t sensed that but I think Microsoft is even worse
What is your current package
I wouldn’t tolerate that personally; they’ll be paying your current TC + around 40% for you as a contractor. So even if they match your current TC they’ll still be way better off. Be honest with them on your expectations, or walk away.
That’s what I thought so was surprised when I heard about the pay cut.
Yeah this is correct , t mobile would be really happy to take you even at the current salary. I am not sure why are they asking you to take a pay cut. I have seen a lot of people getting converted at my client with same salary. Unless they are trying to downlevel you. Or match salary of their own employee at your current level
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